Deal Journal Video: When States Default–2011, Meet 1841

Land values soared. States splurged on new programs. Then it all went bust, bringing down banks and state governments with them. This wasn’t America in 2011, it was America in 1841, writes Dennis K. Berman in his latest column.

In all, eight states and a desolate territory called Florida defaulted on debts. Most of those states eventually paid off what they owed. Yet today states such as California and Florida should note: Leaders and citizens of the 1840s were willing to accept new taxes to pay for the infrastructure and to defend their “moral duty” of meeting debts.